Business Consolidation and Asset Consolidation in the UAE

Business consolidation is a strategy where companies merge or acquire other organizations to strengthen their market position, expand, improve efficiency, and increase competitiveness. Goals of consolidation include cost reduction, scaling production, resource and market share control, access to new markets, and technological base improvement.

Business and asset consolidation in the UAE is a legitimate action, established in local legislation. The Emirates government is open to cooperation with foreign companies and entrepreneurs, develops a flexible tax system, benefits, and supports entrepreneurship in various areas: from IT to construction and real estate.

Economic Situation in the UAE

In 2023, the United Arab Emirates was ranked for the first time in the global "Prosperity Index." This is an indicator from the analytical center Legatum Institute, which measures public welfare and its development on a global scale. The Emirates were highlighted as the best place to live and invest. The country became a leader in investment security, technological and innovative development.

According to a government report, in the first half of 2023, the country's foreign trade turnover reached a record 1.24 trillion dirhams, or 337.6 billion US dollars.

Why the United Arab Emirates attract entrepreneurs from all over the world:

• Favorable business environment with minimal bureaucratic barriers and low tax burden;
• Advantageous geographical location. Access to markets in Asia, Europe, and Africa facilitates the development of international business;
• The tax system consists only of 5% VAT and 9% corporate tax;
• Modern infrastructure. The Emirates have invested significant funds in the development of airports, ports, transportation systems, and technological centers;
• Stability and security. The state is known for its political stability and high level of security;
• Diversity of sectors. In the UAE, main industries are developed: finance, trade, tourism, oil and gas industry, real estate, service sector, etc.;
• High standard of living, modern conditions for work and living. Supported both for locals and foreigners.

Starting your own business in the UAE is an excellent investment decision. The Level Consulting will significantly simplify this process. We will help with company registration, document preparation, licensing, work visas, opening accounts in foreign banks, and preparing for the first transaction. We provide legal support throughout the entire journey. Leave a request on the website for detailed information.

Forms of Business Consolidation in the UAE

The form of consolidation depends on the strategic goals and characteristics of the companies involved in the process. Main options:

• Holding structure;
• Consortium;
• Cross-ownership;
• Merger and acquisition;
• Redomiciliation.

If the goal is expansion, a form that allows the company to access new markets or expand its range of services is preferable. If the main goal is increasing asset value, merger and acquisition are optimal. Focus on the specifics and characteristics of the organization.

Advantages of Business Consolidation and Assets in the UAE

What business consolidation provides:

• Optimization of management structure. Reduce expenses for managing staff within different company divisions;
• Increase in efficiency and economic indicators;
• Increase in asset value through their consolidation;
• Preparation for profitable sale. You will be able to dispose of outdated assets and highlight the most liquid divisions;
• General improvement of financial indicators – also advantageous before a sale to increase value;
• Legal confirmation of financial operations. Your business will be legal and transparent.

Consolidation of assets and business is a profitable strategy that simplifies management, reduces costs, increases asset value, and improves financial indicators. A flexible tax system and the presence of free economic zones create a favorable investment environment for entrepreneurs. The possibility of choosing a specific form allows adaptation to the specifics and goals of a particular company.